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91_SB1472
LRB9110549JSpcA
1 AN ACT creating the Short-term Loan Act.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Short-term Loan Act.
6 Section 5. Definitions.
7 "Check" means a check, draft, or other negotiable
8 instrument used for payment of money.
9 "Department" means the Department of Financial
10 Institutions.
11 "Director" means the Director of the Department of
12 Financial Institutions.
13 "Interest bearing loan" means a loan in which the debt is
14 expressed as a principal amount plus interest charged on
15 actual unpaid principal balances for the time actually
16 outstanding.
17 "Licensee" means an entity licensed under this Act to
18 provide loan services.
19 "Local Government Authorization Form" means a form
20 prescribed by the Director and signed by the clerk or chief
21 executive officer of the county or municipality in which the
22 licensee is to be located certifying that the applicant for a
23 short-term loan license or license renewal and the location
24 at which the licensee will be located comply with the zoning
25 and all other applicable county or municipal ordinances and
26 regulations.
27 "Net worth" means total assets minus total liabilities.
28 "Short-term loan" means a loan that:
29 (1) is made by a lender that does not accept
30 insured deposits;
31 (2) is secured by a post-dated check or by the
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1 title to a motor vehicle; and
2 (3) has a term of not more than 30 days or upon
3 which interest is charged at an annual percentage rate
4 exceeding 36%.
5 Section 10. License required. No person, partnership,
6 association, limited liability company, corporation, or other
7 business combination or entity may engage in the business of
8 making short-term loans except as authorized by this Act and
9 while licensed under this Act.
10 Section 15. Application; fees; net worth; bond.
11 (a) An applicant for a license under this Act shall
12 apply in writing in the form prescribed by the Director. At
13 the time of making the application, the applicant shall pay
14 to the Director $750 as a non-refundable application fee and
15 $1,000 as an annual license fee for a period terminating on
16 the last day of the current calendar year. If the application
17 is filed after June 30th in any year, however, the license
18 fee shall be 50% of the annual license fee for the year.
19 (b) An applicant shall prove in form satisfactory to the
20 Director that the applicant has and will maintain net worth
21 of a minimum of $250,000 for each licensed location.
22 (c) A licensee shall maintain a surety bond in the
23 principal sum of $50,000 for each licensed location issued by
24 a bonding company authorized to do business in this State and
25 approved by the Director. The bond shall run to the Director
26 and shall be for the benefit of any person who is lawfully
27 awarded damages pursuant to an appropriate court order as a
28 result of the actions of the licensee arising out of a
29 violation of this Act. If the Director finds at any time that
30 a bond is of insufficient size or is insecure, exhausted, or
31 otherwise doubtful, an additional bond in such amount as
32 determined by the Director shall be filed by the licensee
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1 within 30 days after written demand therefor by the Director.
2 (d) An applicant shall provide a completed Local
3 Government Authorization Form signed by the clerk or chief
4 executive officer of the county or municipality in which the
5 licensee is to be established with any application for a
6 license, license renewal, or relocation.
7 Section 20. Granting of license.
8 (a) The Director shall not issue a license for the
9 location described in the application if he or she finds any
10 of the following to exist:
11 (1) a director, managerial employee, collection
12 agent, partner, or officer of the applicant has been
13 convicted of a felony;
14 (2) the location fails to conform to local zoning
15 laws with respect to location, structural, aesthetic, or
16 other requirements;
17 (3) the location is within one mile of a facility
18 operated by an inter-track wagering location licensee or
19 an organization licensee subject to the Illinois Horse
20 Racing Act of 1975, is within one mile of a facility at
21 which gambling is conducted under the Riverboat Gambling
22 Act, is within one mile of the location at which a
23 riverboat subject to the Riverboat Gambling Act docks, or
24 is within one mile of the main or branch campus of a
25 public or private college or university that provides
26 student housing or student residences; or
27 (4) the applicant has failed to submit a completed
28 Local Government Authorization Form.
29 (b) A licensee must obtain written approval from the
30 Director before relocating a licensed office.
31 (c) A licensee shall prominently display at each
32 licensed location a notice disclosing that the licensee is
33 regulated by the Department of Financial Institutions and
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1 that any questions regarding such licensing should be
2 directed to the Department at the telephone number specified
3 in the notice. The notice shall disclose a schedule of all
4 fees and interest to be charged, including the corresponding
5 interest rate, for loans payable in 14 days, for loans
6 payable in 30 days, and for any other loan duration term for
7 which the licensee issues loans. The notice shall also
8 disclose that the licensee cannot use the criminal justice
9 system to collect a short-term loan.
10 Section 25. License renewal.
11 (a) A license under this Act expires on December 31 of
12 each year. At the time the licensee applies for license
13 renewal, the licensee shall submit to the Department, as
14 part of the license renewal application, an annual summary of
15 the following information:
16 (1) the number of loans made that were secured by
17 the title to a motor vehicle;
18 (2) the number of vehicle repossessions as a result
19 of default on a loan secured by a title to a motor
20 vehicle;
21 (3) the number of loans made that were secured by a
22 post-dated check;
23 (4) the number of loans made that were secured by a
24 post-dated check that resulted in default; and
25 (5) any other information the Department deems
26 appropriate.
27 (b) A license must be renewed on forms prescribed by the
28 Director no later than November 30 of each year.
29 (c) A license not renewed by December 31 shall be
30 considered canceled without the licensee being entitled to a
31 hearing.
32 (d) The Director may not renew a license for a location
33 that due to a change in circumstances, including the
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1 enactment of a local zoning ordinance, since the original
2 issuance or most recent renewal:
3 (1) has a director, managerial employee, collection
4 agent, partner, or officer of the applicant that has been
5 convicted of a felony;
6 (2) is within one mile of a facility operated by an
7 inter-track wagering location licensee or an organization
8 licensee subject to the Illinois Horse Racing Act of
9 1975, is within one mile of a facility at which gambling
10 is conducted under the Riverboat Gambling Act, is within
11 one mile of the location at which a riverboat subject to
12 the Riverboat Gambling Act docks; or is within one mile
13 of the main or branch campus of a public or private
14 college or university which provides student housing or
15 student residences; or
16 (3) fails to provide a completed Local Government
17 Authorization Form.
18 Section 30. Multiple licenses to same licensee. No more
19 than one place of business shall be maintained under the same
20 license, but the Director may issue more than one license to
21 the same licensee upon compliance with all of the provisions
22 of this Act governing the original issuance of a license.
23 Section 35. Lending limits and refinancing. A loan
24 secured by a post-dated check may not exceed $500 in
25 principal amount, and any other loan may not exceed $2,000 in
26 principal amount. A loan made under this Act may be
27 refinanced a maximum number of 2 times, and only when the
28 loan's previous outstanding balance has been reduced by at
29 least 25%. If a loan is secured by a post-dated check, the
30 post-dated check must name the lender as the payee.
31 Section 40. Investigation of conduct of business.
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1 (a) For the purpose of discovering violations of this
2 Act or securing information lawfully required by it, the
3 Director may at any time investigate the loans and business
4 and examine the books, accounts, records, and files used
5 therein, of every licensee and of every person, partnership,
6 association, limited liability company, and corporation
7 engaged in the business of making short-term loans, whether
8 such person, partnership, association, limited liability
9 company, or corporation shall act or claim to act as
10 principal or agent or within or without the authority of this
11 Act. For such purpose the Director shall have free access to
12 the offices and places of business, books, accounts, papers,
13 records, files, safes, and vaults of such persons,
14 partnerships, associations, limited liability companies, and
15 corporations. The Director may require the attendance of and
16 examine under oath all persons whose testimony he or she may
17 require relative to such loans or such business, and in such
18 cases the Director shall have power to administer oaths to
19 all persons called as witnesses; and the Director may conduct
20 such examinations.
21 (b) The Director shall make an examination of the
22 affairs, business, office, and records of each licensee at
23 least once each year. The Director shall by rule set the fee
24 to be charged for each examination day, including travel
25 expenses for out-of-state licensed locations. The fee shall
26 reasonably reflect actual costs. The Director shall also have
27 authority to examine the books and records, as the Director
28 deems necessary, of a former licensee that is being
29 liquidated and may charge the examination fees otherwise
30 required for licensees.
31 (c) All books, accounts, records, and files of a
32 licensee shall be available in a computerized or electronic
33 format and shall, at a minimum, provide the following
34 information:
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1 (1) the customer's name and the original date of
2 the loan;
3 (2) an indication of whether the transaction
4 recorded is a new loan or a renewal or rollover of an
5 existing loan and, if a renewal or rollover, the date of
6 the renewal or rollover;
7 (3) the number of loan contracts obtained by the
8 borrower, including renewals and rollovers of prior
9 loans;
10 (4) the total finance charges incurred by that
11 customer with respect to the loan transaction; and
12 (5) such other information as the Director may
13 require.
14 Section 45. Contractual disclosures and prohibitions.
15 (a) The loan contract must provide all disclosures
16 required by Regulation Z of the Federal Truth-In-Lending Act.
17 A copy of all loan documents must be given to the borrower.
18 (b) Before entering into a short-term loan agreement, a
19 licensee must give to the borrower a pamphlet describing the
20 borrower's rights and responsibilities in the transaction and
21 providing a toll-free number through which the borrower can
22 contact the Department of Financial Institutions regarding
23 questions and complaints.
24 (c) The loan contract must include a separate statement
25 signed by the debtor attesting that the debtor does not have
26 any outstanding loans made by a licensee under this Act
27 within the preceding 30 days.
28 (d) A licensee who knowingly or recklessly makes a loan,
29 other than the renewal of an original loan, to a borrower who
30 has an outstanding loan made under this Act within the 30
31 days preceding the date the loan is made is guilty of a Class
32 4 felony. A borrower who provides a false statement with
33 respect to outstanding loans made to the borrower under this
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1 Act within the 30 days preceding the obtaining of a new loan
2 and obtains a new loan may not bring a civil action pursuant
3 to Section 120 of this Act with respect to the new loan.
4 (e) No licensee may require binding arbitration or
5 mediation prior to the filing of a civil action pursuant to
6 Section 120 nor provide for arbitration or mediation in a
7 venue other than the county in which the loan was made. No
8 loan contract may contain a cognovit or confession of
9 judgement clause or provision. No short-term loan may require
10 the borrower to deposit a set of vehicle keys with the lender
11 or an agent of the lender as a condition of, or incident to,
12 the loan. A loan contract shall advise the borrower that
13 matters involving improprieties in the making of the loan or
14 in loan collection practices may be referred to the
15 Department and shall prominently display the Department's
16 address and telephone number. No licensee may take possession
17 of a motor vehicle for a loan default and lease the vehicle
18 back to the borrower. Any appraisal of the value of a motor
19 vehicle that has been used to secure a loan shall be limited
20 to the vehicle's Kelly Blue Book Used Car Guide value.
21 Section 47. Debt management service; notice.
22 (a) At the time a licensee conveys a notice to a
23 borrower indicating the borrower is in arrears or in default
24 for a legally constituted debt issued by the licensee under
25 this Act, the licensee shall include with the notice a
26 statement indicating the toll-free telephone number of the
27 Department of Financial Institutions which the borrower may
28 contact for the purpose of the borrower receiving information
29 from the Department on how to contact a debt management
30 service for assistance in resolving debt problems of the
31 borrower. The form and method of the notice provided by
32 licensees shall be subject to approval by the Department.
33 (b) The Department is required to establish a toll-free
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1 telephone number as provided by subsection (a) of this
2 Section. This toll-free number may be the same as that
3 disclosed under subsection (b) of Section 45. The Department
4 shall, in cooperation with an organization representing debt
5 management services, establish a listing of debt management
6 service offices that the Department shall provide to
7 borrowers who are requesting the services of those offices.
8 The Department shall provide the list on an approximate
9 geographic basis as that relates to the borrower's residence.
10 (c) The Department of Financial Institutions, in
11 cooperation with an organization representing debt management
12 services, shall prepare a notice that describes the services
13 provided by debt management services. The notice shall
14 include the address, telephone number, and general area
15 served by all debt management services in Illinois. The
16 notice shall be prominently displayed at all locations
17 licensed under this Act.
18 (d) When an original loan made under this Act is
19 refinanced pursuant to Section 35 of this Act, the licensee
20 shall provide a copy of a statement to the borrower which
21 contains the information set forth in subsection (c) of this
22 Section. The statement shall be provided to the borrower
23 separately from the loan refinancing contract at the time the
24 loan refinancing contract is signed by the borrower.
25 (e) Each loan refinancing contract executed by a
26 licensee shall include a statement, which shall be initialed
27 by the borrower, as follows:
28 "I have received from (name of lender) a statement that
29 discloses information about debt management services and the
30 address and telephone number of the debt management service
31 nearest my residence.".
32 (f) The Department shall adopt rules to implement the
33 requirements of this Section. For the purposes of this
34 Section "debt management service" has the meaning given that
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1 term in the Debt Management Service Act.
2 Section 50. Loan proceeds. A licensee may issue the
3 proceeds of a loan in the form of a licensee's business check
4 drawn on the licensee's bank account, money order, or cash;
5 provided, however, that no additional fee may be charged by a
6 licensee for cashing any check or money order issued by the
7 licensee.
8 Section 55. Security interest. In making a short-term
9 loan, a licensee shall not take a security interest in any of
10 the debtor's property other than the post-dated check or the
11 debtor's motor vehicle title, which is tendered by the debtor
12 at the time of obtaining the loan. When a post-dated check
13 is taken as security for a loan, the licensee must stamp or
14 otherwise imprint on the back of the check a notation that
15 the check secures a deferred deposit loan made under this Act
16 and that any holder takes the check subject to the claims and
17 defenses of the maker.
18 Section 60. Other business. A licensee shall not engage
19 in any business other than that for which the license is
20 issued at the licensed location without the prior written
21 approved of the Director.
22 Section 70. Charging of interest and fees.
23 (a) All loans must be interest bearing.
24 (b) To compute time for the calculation of interest and
25 other purposes, the licensee shall calculate interest at the
26 rate of 1/365th of the agreed annual rate for each day
27 actually elapsed.
28 (c) Interest shall be computed on unpaid principal
29 balances outstanding from time to time, for the time
30 outstanding, until fully paid. Each payment shall be applied
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1 equally to both the accumulated interest and the unpaid
2 principal balance so that 50% of the payment is applied to
3 the accumulated interest and 50% of the payment is applied to
4 the unpaid principal balance; provided however, that, if the
5 amount of the payment is insufficient to pay the accumulated
6 interest, the unpaid interest continues to accumulate to be
7 paid from the proceeds of subsequent payments and may not be
8 added to the principal balance. If the 50% of the payment
9 applied to the accumulated interest is greater than the
10 amount of interest accumulated at the time of the payment,
11 the interest shall be paid in full and the remainder of the
12 payment shall be applied to the outstanding principal
13 balance, in addition to the 50% of the payment already
14 applied to the outstanding principal balance.
15 (d) Interest shall not be payable in advance or
16 compounded.
17 (e) A licensee may not charge an origination fee greater
18 than:
19 (1) $5 for a loan up to $100;
20 (2) $10 for a loan between $101 and $250;
21 (3) $15 for a loan between $251 and $500; and
22 (4) $20 for a loan of $501 or more.
23 (f) In cases in which the original short-term loan is
24 being refinanced pursuant to Section 35 of this Act, a
25 licensee may charge a fee equivalent to 50% the amount of the
26 original origination fee. The minimum charge for refinancing
27 a short-term loan shall be $5.
28 (g) In addition to the origination fee, a licensee may
29 charge finance charges on the amount financed of the
30 short-term loan transaction at an annual percentage rate not
31 to exceed 40% over the prime rate on the first business day
32 of the month prior to the month in which the short-term loan
33 transaction is made, as reported by the Federal Reserve
34 Board.
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1 (h) Licensees may assess charges only as permitted in
2 this Act.
3 Section 75. Prepayment.
4 (a) At the debtor's option, a loan may be prepaid either
5 in part or in full with the licensee refunding the unearned
6 interest charge calculated on a prorata daily basis.
7 (b) A consumer shall be permitted to make partial
8 payments, in amounts equal to no less than $5, on the loan at
9 any time without charge.
10 Section 80. Closing of business; surrender of license.
11 (a) At least 10 days prior to a licensee ceasing
12 operations or closing business, the licensee shall:
13 (1) notify the Department of its action in writing;
14 (2) surrender its license to the Director for
15 cancellation; and
16 (3) notify the Department of the location where the
17 books, accounts, contracts, and records will be
18 maintained and the procedure to ensure prompt return of
19 contracts, titles, and releases to the customers.
20 (b) The surrender of the license shall not affect the
21 licensee's civil or criminal liability for acts committed
22 prior to surrender nor entitle the licensee to a return of
23 any part of the annual license fee.
24 (c) The accounts, books, records, and contracts shall be
25 maintained and serviced by the licensee or another licensee
26 under this Act, or an entity exempt from licensure under this
27 Act.
28 (d) The Department shall have the authority to conduct
29 examinations of the books, records, and loan documents at any
30 time after surrender of the license, filing of bankruptcy, or
31 the cessation of operations.
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1 Section 85. Bankruptcy.
2 (a) On the date of filing for bankruptcy, the licensee
3 shall notify the Department in writing of the:
4 (1) date of bankruptcy;
5 (2) docket number;
6 (3) presiding judge; and
7 (4) name and address of the trustee.
8 (b) If the bankrupt entity elects to close its business,
9 the provisions in Section 80 must be satisfied.
10 Section 90. Returned checks.
11 (a) If a check received as payment for a loan is
12 returned to the licensee for nonpayment, the licensee may
13 assess the debtor a fee not exceeding $15 or the cost
14 actually incurred by the lender as an insufficient funds
15 charge, whichever is less. Only one such fee may be collected
16 with respect to a particular check even if it has been
17 redeposited more than once. A fee charged pursuant to this
18 Section is a licensee's exclusive charge for late payment.
19 (b) No licensee, nor any person claiming directly or
20 indirectly through the licensee for a loan made pursuant to
21 this Act, may pursue or threaten to pursue criminal penalties
22 against a debtor for any returned or dishonored check.
23 (c) A violation of this Section is a Class B
24 misdemeanor. In addition to all other criminal and
25 administrative enforcement and penalties, a claim of
26 violation of this Section may be asserted pursuant to Section
27 120 of this Act.
28 Section 95. Recording or releasing lien.
29 (a) Upon making a loan secured by a title to a motor
30 vehicle, the licensee must immediately take into possession
31 evidence of the debtor's ownership in the motor vehicle that
32 has been registered with the Office of the Illinois Secretary
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1 of State.
2 (b) Within 24 hours after making the loan, the licensee
3 must file a lien with the Office of the Illinois Secretary of
4 State.
5 (c) Within 24 hours after payment in full, the licensee
6 must release all filed liens and provide evidence of the
7 release to the debtor.
8 (d) The licensee may not charge, directly or indirectly,
9 fees associated with the repossession of a motor vehicle.
10 Section 100. Sale or hypothecation of a loan. No
11 licensee may sell, hypothecate, pledge, or assign any loan
12 made under this Act.
13 Section 105. Financial Institutions Fund; deposits. All
14 moneys received by the Department under this Act shall be
15 deposited in the Financial Institutions Fund created under
16 Section 6z-26 of the State Finance Act.
17 Section 110. Penalties for violation; cease and desist
18 orders.
19 (a) Any entity engaging in the business of making
20 short-term loans without the requisite license is guilty of a
21 Class 4 felony.
22 (b) A license issued under this Act may be revoked if
23 the licensee or any director, manager of a limited liability
24 company, partner, or officer thereof is convicted of a
25 felony.
26 (c) No provision of this Section imposing any liability
27 shall apply to any act done or omitted in conformity with any
28 rule or written interpretation thereof by the Department of
29 Financial Institutions, notwithstanding that after that act
30 or omission has occurred, the rule or interpretation is
31 amended, rescinded, or determined by judicial or other
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1 authority to be invalid for any reason. All interpretations
2 relied upon must be written and signed by the Department's
3 Chief Counsel and approved by the Director.
4 (d) The Director may issue a cease and desist order to
5 any licensee, or person doing business without the required
6 license, when, in the opinion of the Director, the licensee
7 or other person is violating or is about to violate any
8 provision of this Act or any rule or requirement imposed in
9 writing by the Department as a condition of granting any
10 authorization permitted by this Act.
11 (e) The Director may issue a cease and desist order
12 prior to holding a hearing.
13 (f) The Director shall serve notice of his or her
14 action, designated as a cease and desist order made pursuant
15 to this Section, including a statement of the reasons for the
16 action, either personally or by certified mail, return
17 receipt requested. Service by certified mail shall be deemed
18 completed when the notice is deposited in the U.S. Mail.
19 (g) Within 15 days after service of the cease and desist
20 order, the licensee or other person may request, in writing,
21 a hearing.
22 (h) The Director shall schedule a hearing within 30 days
23 after receiving the request for a hearing unless otherwise
24 agreed to by the parties.
25 (i) The Director shall have the authority to prescribe
26 rules for the administration of this Section.
27 (j) If it is determined that the Director had the
28 authority to issue the cease and desist order, he or she may
29 issue such orders as may be reasonably necessary to correct,
30 eliminate, or remedy such conduct.
31 (k) The powers vested in the Director by this Section
32 are additional to any and all other powers and remedies
33 vested in the Director by law, and nothing in this Section
34 shall be construed as requiring that the Director shall
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1 employ the power conferred in this Section instead of or as a
2 condition precedent to the exercise of any other power or
3 remedy vested in the Director.
4 (l) The cost for the administrative hearing shall be set
5 by rule.
6 Section 115. Fines; suspension or revocation of license.
7 (a) The Director may, after 10 days notice by registered
8 mail to the licensee at the address set forth in the license,
9 stating the contemplated action and in general the grounds
10 therefor, fine the licensee an amount not exceeding $10,000
11 per violation, or revoke or suspend any license issued under
12 this Act if the Director finds that:
13 (1) the licensee has failed to comply with any
14 provision of this Act or any order, decision, finding,
15 rule, or direction of the Director lawfully made pursuant
16 to the authority of this Act; or
17 (2) any fact or condition exists that, if it had
18 existed at the time of the original application for the
19 license, clearly would have warranted the Director in
20 refusing to issue the license.
21 (b) The Director may fine, suspend, or revoke only the
22 particular license with respect to which grounds for the
23 fine, revocation, or suspension occur or exist, but if the
24 Director finds that grounds for revocation are of general
25 application to all offices or to more than one office of the
26 licensee, the Director shall fine, suspend, or revoke every
27 license to which the grounds apply.
28 (c) No revocation, suspension, or surrender of any
29 license shall impair or affect the obligation of any
30 pre-existing lawful contract between the licensee and any
31 obligor.
32 (d) The Director may issue a new license to a former
33 licensee whose license has been revoked when facts or
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1 conditions that clearly would warrant the Director in
2 refusing to issue the license do not exist.
3 (e) In every case in which a license is suspended or
4 revoked or an application for a license or renewal of a
5 license is denied, the Director shall serve the licensee with
6 notice of that action, including a statement of the reasons
7 for the action, either personally or by certified mail,
8 return receipt requested. Service by certified mail shall be
9 deemed completed when the notice is deposited in the U.S.
10 Mail.
11 (f) An order assessing a fine, an order revoking or
12 suspending a license or, an order denying renewal of a
13 license shall take effect upon service of the order unless
14 the licensee requests, in writing, within 10 days after the
15 date of service, a hearing. If a hearing is requested, the
16 order shall be stayed until a final administrative order is
17 entered.
18 (g) If the licensee requests a hearing, the Director
19 shall schedule a hearing within 30 days after the request for
20 a hearing is received unless otherwise agreed to by the
21 parties.
22 (h) The hearing shall be held at the time and place
23 designated by the Director. The Director and any
24 administrative law judge designated by him or her shall have
25 the power to administer oaths and affirmations, subpoena
26 witnesses and compel their attendance, take evidence, and
27 require the production of books, papers, correspondence, and
28 other records or information that he or she considers
29 relevant or material to the inquiry.
30 (i) The costs for the administrative hearing shall be
31 set by rule.
32 (j) The Director shall have the authority to prescribe
33 rules for the administration of this Section.
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1 Section 120. Civil action. A claim of violation of this
2 Act by a short-term lender may be asserted in a civil action,
3 including a class action, by any aggrieved person, for which
4 punitive damages, costs, and reasonable attorney fees may be
5 awarded. A borrower who falsely attests to not having an
6 outstanding loan made by a licensee under this Act within the
7 preceding 30 days, as required under Section 45, in order to
8 obtain a new loan may not bring a civil action under this
9 Section with respect to the new loan. No loan contract may
10 require binding arbitration or mediation prior to filing a
11 civil action pursuant to this Section.
12 Section 125. Rules. The Department may make and enforce
13 such reasonable rules, directions, orders, decisions, and
14 findings as the execution and enforcement of the provisions
15 of this Act require and as are not inconsistent therewith.
16 Section 130. Judicial review. All final administrative
17 decisions of the Department under this Act shall be subject
18 to judicial review pursuant to the provisions of the
19 Administrative Review Law, all amendments and modifications
20 thereof, and any rules adopted pursuant thereto.
21 Section 135. Injunction; civil penalty; costs. If it
22 appears to the Director that a person or any entity has
23 committed or is about to commit a violation of this Act, a
24 rule promulgated under this Act, or an order of the Director,
25 the Director may apply to the circuit court for an order
26 enjoining the person or entity from violating or continuing
27 to violate this Act, the rule, or order and for injunctive or
28 other relief that the nature of the case may require and may,
29 in addition, request the court to assess a civil penalty up
30 to $1,000 along with costs and attorney's fees.
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1 Section 140. Confidentiality of data.
2 (a) Reports of investigation and examination,
3 correspondence, and memoranda concerning or arising out of an
4 investigation, examination, or report, including any copies
5 thereof, in the possession of the Director shall be
6 confidential communications, shall not be subject to
7 disclosure under the Freedom of Information Act, and shall
8 not be made public unless the Director finds that the ends of
9 justice and the public advantage will be served by the
10 disclosure. Upon such finding, the Director may disclose, in
11 whole or in part, any report or other material referred to in
12 this Section in a manner he or she considers proper.
13 (b) The Director may release any of the information
14 described in subsection (a) to any agency of this State,
15 another State, or the United States when he or she finds that
16 the ends of justice and the public advantage will be served
17 by the disclosure, provided that the receiving agency has
18 confidentiality procedures comparable to those contained in
19 this Act.
20 (c) The Director may release to the public a list of
21 licensees.
22 Section 145. Local ordinances.
23 (a) A county or municipality may, by ordinance, require
24 a short-term lender to conduct its business within a
25 described geographic zone and may require that the licensed
26 building or premises conform to described aesthetic
27 standards.
28 (b) A county or municipality may, by ordinance, require
29 a short-term lender to make all required disclosures,
30 pamphlets, and posted notices in languages other than English
31 as required to meet the needs of the community in which the
32 short-term lender is located, including but not limited to,
33 notice of interest rates and fees, and that use of the
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1 criminal justice system to collect a loan after default is
2 prohibited. A local ordinance may also require the posting
3 of a schedule in English and an appropriate foreign language
4 indicating all fees and interest to be charged on a loan
5 payable in 14 days, on a loan payable in 30 days, and for any
6 other loan duration term for which the licensee issues loans.
7 (c) A county or municipality, including a home rule
8 county or municipality, may regulate short-term lending
9 businesses in a manner that is not inconsistent with the
10 regulation by the State of those businesses under this Act.
11 This Section is a limitation under subsection (i) of Section
12 6 of Article VII of the Illinois Constitution on the
13 concurrent exercise by home rule units of powers and
14 functions exercised by the State. A county or municipality
15 may charge a licensee a fee to cover the costs and expenses
16 reasonably associated with any inspection, clerical, and
17 other costs incurred in verifying and providing information
18 required by a Local Government Authorization Form or
19 otherwise associated with local regulations.
20 Section 150. Severability. The provisions of this Act
21 are severable under Section 1.31 of the Statute on Statutes.
22 Section 199. Effective date. This Act takes effect upon
23 becoming law.